BANGKOK, Nov 12 - Thai stocks fell to a one-week low today, weighed down by losses in energy heavyweights PTT and PTT Exploration, while Indonesia climbed to its highest in more than two weeks as Adaro Energy jumped on MSCI index news.
Major Southeast Asian stock markets elsewhere were taking a breather after a recent rally, with Singapore’s index dropping 0.5 per cent after climbing for over four days, while Malaysia inched up 0.1 per cent.
“Stock market sentiment globally turned a bit neutral. Several markets have scaled peaks this year and they are now consolidating,” said Tisco Securities strategist Viwat Techapoonphol in Bangkok.
“Thailand was largely hit by selling in PTT and PTT Exploration and by domestic issues,” he said, referring to growing political uncertainty as fugitive former premier Thaksin Shinawatra rallied supporters from just over the border in Cambodia, while his opponents planned a weekend rally in Bangkok.
Thailand’s index dropped nearly 3 per cent to 696.72, its lowest since Nov 6, with PTT, the country’s biggest energy firm, sliding 5.6 per cent to 236 baht and its exploration flagship, PTT Exploration and Production, losing 5.6 per cent to 136 baht.
The two stocks weigh a combined 21 per cent in the benchmark Thai stock index. Goldman Sachs cut its target price for PTT by 9.1 per cent to 300 baht and for PTT Exploration by 7.5 per cent to 160 baht, dealers said.
Investors were concerned about the outlook for the PTT group due to a recent court order to suspend 76 industrial projects, including those of PTT, at the country’s biggest industrial estate due to environmental concerns.
Some analysts expect a rebound in the Thai market due to the improving economic outlook next year. Macquarie Research has raised its Thai SET index target from 650 for 2009 to 800 for 2010, according to a research note.
In Singapore, Wilmar International fell 2 per cent, paring early gains after the world’s largest listed palm oil firm said it was optimistic about prospects for the rest of this year after a one-off gain helped it post a better-than-expected 35 per cent rise in quarterly profit.
Singapore Telecommunications dropped 1.7 per cent and Singapore Exchange fell 2.3 per cent.
In Kuala Lumpur, palm plantation firm Sime Darby gained 0.1 per cent in response to higher Malaysian crude palm oil futures. Malayan Banking fell 0.2 per cent before the top lender announced that its first-quarter net profit had risen by more than half as the rebound in Asian economies boosted fee-based income and its loan book.
Indonesia’s index ended up 0.7 per cent, hitting its highest since Oct 27, with top coal miner Adaro Energy climbing 4.5 per cent after news the stock will be included in the MSCI Indonesia Index with effect from Nov 30.
Other stocks that will also be included in the index gained, with coal miner Indo Tambangraya Megah up 3.7 per cent and Bank Negara Indonesia 2 per cent higher.
In Manila, the index gained 0.9 per cent, with conglomerate Metro Pacific Investments Corp up 3.9 per cent after reiterating that its purchase of more shares in Manila Electric would not trigger a costly tender offer. Manila Electric Co fell 1.9 per cent.
Vietnam’s index extended its gains into a second day, adding 1.7 per cent — Reuters
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